By Stephanie N. Rotondo
Seattle, May 18 – W.R. Berkley Corp. priced a $290 million offering of 5.75% $25-par subordinated debentures due June 1, 2056 (expected ratings: Baa3/BBB-/BBB-) on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
Price talk was initially in the 6% area, a market source said. It was later revised to 5.75%.
Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.
Interest will be payable quarterly on the first day of March, June, September and December, beginning Sept. 1. The company has the option to defer the interest payments for up to five consecutive years.
The notes become redeemable on or after June 1, 2021 at par plus accrued interest. The company can also call the notes, in whole, within 90 days of a tax event, also at par plus accrued interest.
In the event of a rating agency event, the company can also redeem the issue in whole at a price equal to the greater of their principal amount or a make-whole amount plus accrued interest.
Proceeds will be used for general corporate purposes.
W.R. Berkley is a Greenwich, Conn.-based commercial lines property and casualty insurance holding company.
| Issuer: | W.R. Berkley Corp.
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| Securities: | Subordinated debentures
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| Amount: | $290 million
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| Maturity: | June 1, 2056
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| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC, Wells Fargo Securities LLC
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| Coupon: | 5.75%
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| Price: | Par of $25
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| Yield: | 5.75%
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| Talk: | Initially 6% area, then revised to 5.75%
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| Call options: | On or after June 1, 2021 or in whole within 90 days of a tax event at par plus accrued interest; upon a rating agency event at a price equal to the greater of their principal amount or a make-whole amount plus accrued interest
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| Pricing date: | May 18
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| Settlement date: | May 25
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| Expected ratings: Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB-
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| Expected listing: | NYSE: WRBPD
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| Cusip: | 084423607
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